Note: See the text itself for full citations.


List several tasks and outputs of project execution
Discuss what is involved in directing and managing
project execution as part of project integration
management,
◦ including the importance of producing promised deliverables,
implementing solutions to problems, evaluating work
performance information, and requesting changes to a project

Explain the importance of recommending corrective
actions and updating project-related information as
part of quality assurance
2

Describe the executing tasks performed as part of human
resource management,
◦ summarize important concepts related to managing people, and
explain what is involved in leveling resources, assigning staff,
reviewing resource calendars, and assessing team performance


Discuss important communications concepts, and
describe the executing tasks performed as part of
communications management
Explain the executing tasks performed as part of
procurement management,
◦ and describe what is involved in selecting sellers and preparing
contract awards
3


Project execution is the most noticed process group
Research shows that without a doubt,
◦ the main reason CEOs failed was poor execution;
◦ the same is true for project managers


Recall that, in general, the majority of a project’s time
and budget is spent on project execution
Many of the tasks and outputs created in the other
process groups are fairly similar from project to
project,
◦ but no two projects are ever executed in the exact same
way due to uncertainties and unique challenges
4
“The results are not acceptable,” stated President Bush four days after
Hurricane Katrina caused major damage to New Orleans and
surrounding areas. After Federal Emergency Management Agency
(FEMA) officials returned in January 2005 from a tour of the tsunami
devastation in Asia, New Orleans was the number one disaster they
discussed.
Officials had drawn up dozens of plans and conducted preparedness
drills for years, but despite all the warnings, Hurricane Katrina
overwhelmed government agencies, and many people suffered from
slow response to their needs for emergency aid.
The mayor of New Orleans, C. Ray Nagin, blasted the government for
its lack of an immediate response. “I’ve talked directly with the
President, I’ve talked to the head of the Homeland Security, I’ve
talked to everybody under the sun, I’ve been out there.”* People were
disappointed with
the poor execution of disaster relief efforts during
*Shadi Rahimi, “Bush Embarks on Tour to Survey Damage,” The New
the first few days,York
andTimes
officials
took corrective actions to address the
(September 2, 2005).
challenges caused by the hurricane.
5
Knowledge area
Executing process
Outputs
Project integration management
Direct and manage project
execution
Deliverables
Work performance data
Change requests
Project management plan updates
Project document updates
Project quality management
Perform quality assurance
Organizational process asset updates
Change requests
Project management plan updates
Project document updates
Project human resource
management
Acquire project team
Develop project team
Manage project team
Project staff assignments
Resource calendars
Project management plan updates
Team performance assessment
Enterprise environmental factors updates
Change request
Project management plan updates
Enterprise environmental factors updates
Organizational process assets updates
Project communications
management
Distribute information
Manage stakeholder expectations
Organizational process assets updates
Organizational process assets updates
Change requests
Project management plan
updates
Project document updates
Project procurement management
Conduct procurements
Selected sellers
Procurement award
Resource calendars
Change requests
Project management plan updates
Project documents updates
6

To direct and manage project stakeholders, project
managers can follow several important practices:
◦
◦
◦
◦
◦
Coordinate planning and execution
Develop and use soft skills
Provide a supportive organizational culture.
Break the rules when needed
Capitalize on product, business, and application area
knowledge
◦ Use project execution tools and techniques
7



Most project sponsors would say that the most
important output of any project is its deliverables
Recall that deliverables are products or services
produced or provided as part of a project
For the Just-In-Time Training project at Global
Construction, key deliverables include:
◦ Training materials and courses (instructor-led, Webbased, and CD-ROM)
◦ Deliverables related to developing and delivering those
training materials and courses,
 such as surveys, design documents, prototypes, and
meetings
8


During project execution, project managers must
collect, assess, and communicate work
performance information
Many project managers, like Kristin, use the
“management by wandering around” (MBWA)
approach, meaning
◦ they informally observe and talk to project team
members, suppliers, and other stakeholders as much as
possible

Kristin also used formal communications,
◦ such as status reports, survey results, and course
evaluations, to address work performance on the project
9

A common way to summarize work performance
information is by using a milestone report
◦ Recall that a milestone is a significant event on a
project, such as completing a major deliverable or
awarding a major contract

In addition to listing the milestones, the report lists
◦
◦
◦
◦
the planned date for completion (in month/day format),
the status,
the person responsible for the milestone,
and issues/comments
10
Milestone
Date
Status
Responsible
Issues/Comments
Researched existing
training
8/13
Complete
Jamie (replaced by
Abner)
Many basic courses
available, but not
much
advanced/tailored
training. ( Note:
Replaced Jamie
with better
candidate for
project after Jamie
completed this task)
Supplier management 8/24
training survey
results reported to
steering committee
Completed
Kristin
Great feedback.
Many people
stressed the need to
have instructor-led
training and
mentors for soft
skills development
Meetings with
potential partners
9/21
In progress
Kristin/Contracting
May need more
time for meetings
Partnership
agreements
completed
9/28
Not started
yet
Kristin/Contracting
May need more
time to set up
agreements
11



Often, a number of requests for changes emerge
during project execution
Recall that a process for handling changes should
be defined during project planning as part of the
project management plan
It is important during project execution to formally
and informally request appropriate changes
12
Team 5 covers this Figure
Project Name: Just-In-Time Training Project
Date Request Submitted: September 22
Title of Change Request: Increase time to develop partnerships for supplier management training
Change Order Number: A200-17
Submitted by: Kristin Maur
Change Category: __Scope __Schedule X Cost
__Technology __Other
Description of change requested:
In order to avoid a schedule slip and have appropriate internal resources available, we are requesting the approval of paid
overtime for creating and distributing the survey for the supplier management course.
Events that made this change necessary or desirable:
The IT person assigned to our project has several other important projects on-hand. If these tasks are delayed, the entire project
will be delayed.
Justification for the change/why it is needed/desired to continue/complete the project:
We must send out and analyze the survey in a timely manner since we need the information to develop the first supplier
management course and select an appropriate supplier.
Impact of the proposed change on:
Scope: None
Schedule: None
Cost: $550
Staffing: One IT person will work 10 hours of paid overtime basis over a period of several weeks.
Risk: Low. This person suggested the paid overtime and has successfully worked overtime in the past.
Other: None
Suggested implementation if the change request is approved: Include the overtime pay in the normal paycheck.
Required approvals:
Name/Title
Date
Approve/Reject
Evan George/Affected Employee
Stella Jacobs/Employee’s Supervisor
Julia Portman, VP of IT
13


Of course, all project teams face numerous
problems
Some problems can be avoided by doing a good
job of initiating, planning, or monitoring and
controlling the project,
◦ but other problems cannot be avoided

Some common problems encountered during
project execution are described in this chapter,
◦ but project managers must be creative and flexible in
dealing with problems that occur on their projects
14



The project sponsor and/or other
senior managers are not very
supportive of the project.
Project stakeholders, such as
people who would use the
products and services the project
is attempting to create, are not
sufficiently involved in project
decision-making.
The project manager is
inexperienced in managing
people, working in a particular
organization, or understanding
the application area of the
project.







The project objectives/scope are
unclear.
Estimates for time and cost goals
are unreliable or unrealistic.
Business needs/technology
changes have impacted the project.
People working on the project are
incompetent or unmotivated.
There are poor conflictmanagement procedures.
Communications are poor.
Suppliers are not delivering as
promised.
15

Kristin Maur encountered several problems during
execution, such as:
◦ Incompetent or unmotivated people working on the
project
◦ Poor conflict-management procedures
16

Although Jamie was assigned to work on the JustIn-Time Training project from its start,
◦ she was on vacation for most of the first month and
seemed uninterested in the project when she was around


Kristin tried her best to motivate Jamie, but Jamie
was simply not the right person for the project
Kristin talked to Jamie directly (using the
confrontation approach),
◦ and Jamie admitted that she would much rather deal
directly with suppliers than work on this project

Kristin replaced Jamie with someone more suitable
17


Most large projects are high-stake endeavors that
are highly visible within organizations
When the stakes are high,
◦ conflict is never far away,
◦ and even small projects with low budgets have conflicts
◦ it is a natural part of work and life in general

Project managers should lead their teams in
developing norms for dealing with various types of
conflicts that might arise
18


Blake and Mouton (1964) delineated five basic modes
for handling conflicts.
Each strategy can be considered as being high,
medium, or low on two dimensions:
◦
◦
importance of the task or goal,
and importance of the relationship between the people having
the conflict (high/low, medium/medium, and so on).
1. Confrontation or problem-solving: Directly face a conflict
(high/high).
2. Compromise: Use a give-and-take approach
(medium/medium).
3. Smoothing: De-emphasize areas of differences and
emphasize areas of agreement (low/high).
4. Forcing: The win-lose approach (high/low).
5. Withdrawal: Retreat or withdraw from an actual or
potential disagreement (low/low).
19
Relationship Importance
High
Confrontation/
Problem-solving
Smoothing
Compromise
Medium
Withdrawal
Forcing
Low
Low
Medium
High
Task Importance
20

Recent research recognizes a sixth approach called
collaborating mode
◦ where decision makers incorporate different viewpoints and insights to
develop consensus and commitment

Conflict can be good;
◦ it often produces important results, such as new ideas, better
alternatives, and motivation to work harder and more collaboratively

Project team members might become stagnant or develop
groupthink
◦ if there are no conflicting viewpoints on various aspects of a project
◦ Groupthink: conformance to the values or ethical standards of a group

Research suggests that:
◦ Task-related conflict, which is derived from differences over team
objectives and how to achieve them, often improves team performance
◦ Emotional conflict, however, which stems from personality clashes and
misunderstandings, often depresses team performance
21

Quality assurance includes all the activities
related to
◦ satisfying the relevant quality standards for a project

Another goal of quality assurance is
◦ continual quality improvement

Key outputs of quality assurance include
◦
◦
◦
◦
change requests,
project management plan updates,
project document updates,
and updates to organizational process assets
22

Benchmarking generates ideas for quality improvements
◦ by comparing specific project practices or product characteristics to
those of other projects or products within or outside of the
organization itself
◦ (for example, training costs per employee and course ratings are
benchmarks)

A quality audit is
◦ a structured review of specific quality management activities
 that helps identify lessons learned, which could improve performance on
current or future projects

Cause-and-effect diagrams—also called fishbone
diagrams
◦ (because their structure resembles a fishbone) or Ishikawa
diagrams (named after their founder)
◦ can assist in ensuring and improving quality by finding the root
causes of quality problems
23
24


Effective project human resource management is
crucial to project execution
The main tasks project managers perform include
◦ acquiring, developing, and managing the project team

Key outputs include
◦
◦
◦
◦
◦
project staff assignments,
resource calendars,
team performance assessment,
change requests,
and updates to the project management plan and
organizational process assets
25


Project managers must understand motivation
theories to effectively execute projects
Psychologists, managers, coworkers, teachers,
parents, and most people in general
◦ still struggle to understand what motivates people, or why
they do what they do

Intrinsic motivation
◦ causes people to participate in an activity for their own
enjoyment

Extrinsic motivation
◦ causes people to do something for a reward or to avoid a
penalty

Maslow suggested that people’s behaviors are
guided or motivated by a sequence of needs
26
Schwalbe, Information Technology Project Management, Sixth Edition, 2010
27


Frederick Herzberg wrote several famous books
and articles about worker motivation.
He distinguished between the following:
◦ Motivational factors: Factors that cause job satisfaction,
 such as achievement, recognition, the work itself,
responsibility, advancement, and growth
◦ Hygiene factors: Factors that cause dissatisfaction if not
present, but do not motivate workers to do more.
 Examples include larger salaries, more supervision, and a
more attractive work environment
28

Specific needs are acquired or learned over time and
shaped by life experiences, including:
◦ Achievement (nAch):
 People with a high need for achievement
 like challenging projects with achievable goals and lots of feedback
◦ Affiliation (nAff): People with high nAff
 desire harmonious relationships and need to feel accepted by
others,
 so managers should try to create a cooperative work
environment for them
◦ Power: (nPow): People with a need for power
 desire either personal power (not good) or institutional power
(good for the organization).
 Managers should provide institutional power seekers with
management opportunities
29


Douglas McGregor popularized the human
relations approach to management in the 1960s
Theory X: Assumes workers dislike and avoid
work,
◦ so managers must use coercion, threats and various
control schemes to get workers to meet objectives

Theory Y: Assumes individuals consider work as
natural as play or rest and enjoy the satisfaction of
esteem and self-actualization needs
30
1. Authority: The legitimate hierarchical right to issue
orders.
2. Assignment: The project manager's perceived ability
to influence a worker's later work assignments.
3. Budget: The project manager's perceived ability
to authorize others' use of discretionary funds.
4. Promotion: The ability to improve a worker's position.
5. Money: The ability to increase a worker's pay and
benefits.
31
6. Penalty: The project manager's ability to cause
punishment.
7. Work challenge: The ability to assign work that
capitalizes on a worker's enjoyment of doing a particular
task.
8. Expertise: The project manager's perceived special
knowledge that others deem important.
9. Friendship: The ability to establish friendly personal
relationships between the project manager and others.
32

Projects are more likely to succeed when project
managers influence with the following:
◦ Expertise
◦ Work challenge

Projects are more likely to fail when project
managers rely too heavily on the following:
◦ Authority
◦ Money
◦ Penalty
33

Project managers can apply Stephen Covey’s 7
habits to improve effectiveness on projects
◦
◦
◦
◦
◦
◦
◦
Be proactive
Begin with the end in mind
Put first things first
Think win/win
Seek first to understand, then to be understood
Synergize
Sharpen the saw
34

Good project managers are empathic listeners
◦ they listen with the intent to understand

Before you can communicate with others, you
have to have rapport
◦ a relation of harmony, conformity, accord, or affinity

Mirroring is the matching of certain behaviors of
the other person,
◦ a technique to help establish rapport
35

A young business consultant who worked in the IT
department of a major aerospace firm met with a senior
project manager and his core team.
◦ The company was losing money on the project, and the project
manager blamed it all on the IT department

When the project manager entered the meeting room with
three of his staff, all older men,
◦ he threw his books on the table and started yelling at the young
consultant and her even younger assistant

Instead of backing down, the consultant mirrored the project
manager’s behavior and started yelling right back at him.
◦ He stood back, paused, and said, “You’re the first person who’s had
the guts to stand up to me. I like that!”

After that brief introduction, rapport was established, and
everyone began communicating and working together as a
team to solve the problem at hand (true story!)
36


There’s a saying that the project manager who is
the smartest person on the team has done a poor
job of recruiting!
After developing a staffing management plan
during project planning,
◦ project managers must work with other managers in their
organizations to assign personnel to their project
 or to acquire additional human resources

Managers must also motivate their staff
◦ and remember why people choose to leave their jobs
37
1.
2.
3.

They feel they do not make a difference
They do not get proper recognition
They are not learning anything new or growing as
a person
Managers can ensure these reasons do not
occur by doing a good job of motivating and
managing their people
38


Best practices can also be applied to include the best
places for people to work.
Quotes from employees often show why certain
companies made the lists:
◦ “It is a friendly, courteous, caring hospital. We generally care
about our co-workers and our patients. I can always get the
help and support that I need to function in this hospital. This
goes from the top all the way down to the cleaning people.”
◦ “This is the best place I have ever worked. There’s an open
door policy. Every one is allowed to voice their opinion.”
◦ “I get information about everything—profits, losses, problems.
Relationships with people are easier here. It’s more direct
and open.”*
*Great Place to Work Institute, Best Companies Lists,
(www.greatplacetowork.com) (June 2005).
39

Resource loading refers to
◦ the amount of individual resources
 an existing schedule requires during specific time periods

Helps project managers develop a general
understanding of the demands
◦ a project will make on the organization’s resources and
individual people’s schedules

Overallocation means
◦ more resources than are available are assigned to
perform work at a given time
40
41

Resource leveling is a technique for
◦ resolving resource conflicts by delaying tasks

The main purpose of resource leveling is to
◦ create a smoother distribution of resource usage
◦ and reduce overallocation
42
Schwalbe, Information Technology Project Management, Sixth Edition, 2010
43

When resources are used on a more constant
basis,
◦ they require less management

It may enable project managers to use a just-intime inventory type of policy
◦ for using subcontractors or other expensive resources


It results in fewer problems for project personnel
and accounting department
It often improves morale
44


Kristin worked with managers in her company to
staff the internal project team
To keep everyone up-to-date on current project
staffing assignments,
◦ Kristin provided a current team roster on the project Web
site
 and included team member names, roles, and contact
information

As suppliers were added to the project, she
included supplier staff information as well
45
Name
Role on
Project
Position
Email
Mike
Sundby
Project
Champion
VP of HR
mike_sundby@
globalconstruction.com
Lucy
Camerena
Project
Sponsor
Training
Director
lucy_camerena@
globalconstruction.com
Kristin
Maur
Project
Manager
Project
Manager
kristin_maur@
globalconstruction.com
Mohamed
Abdul
Team
Member
Senior
programmer/
analyst
mohamed_abdul@
globalconstruction.com
Kim
Johnson
Team
Member
Curriculum
designer
kim_johnson@
global construction.com
Abner
Tomas
Team
Member
Supply
management
expert
abner_tomas@
globalconstruction.com
Phone
Location
46

Many failed projects have been staffed by highly
talented individuals;
◦ however, it takes teamwork to complete projects
successfully

The main goal of team development is to
◦ help people work together more effectively to improve
project performance

Project managers should understand and apply
good team-building practices
◦ because it takes teamwork to successfully execute most
projects
47





Forming
Storming
Norming
Performing
Adjourning
48


Project managers often recommend that people
take specific training courses to improve individual
and team development
Team-building activities include using
◦ physical challenges and psychological preference
indicator tools,
 such as the Meyers-Briggs Type Indicator and the Wilson
Learning Social Styles Profile
49



MBTI is a popular tool for determining personality
preferences and helping teammates understand
each other
Four dimensions include:
– Extrovert/Introvert (E/I)
– Sensation/Intuition (S/N)
– Thinking/Feeling (T/F)
– Judgment/Perception (J/P)
Project managers might want to make sure that
they have a variety of personality types on their
team
50

People are perceived as behaving primarily in
one of four zones, based on their assertiveness
and responsiveness:
–
–
–
–

Drivers
Expressives
Analyticals
Amiables
People on opposite corners (drivers and
amiables, analyticals and expressives) may
have difficulties getting along
51
Schwalbe, Information Technology Project Management, Sixth Edition, 2010
52



Team-based reward and recognition systems
can promote teamwork
Focus on rewarding teams for achieving specific
goals
Allow time for team members to mentor and help
each other to meet project goals and develop
human resources
53



Managing a project team is no small task!
Project managers must use their soft skills to find
the best way to motivate and manage each team
member
Tools and techniques include:
◦
◦
◦
◦
Observation and conversation
Project performance appraisals
Conflict management
Issue logs
54

Project managers assess team performance in
several ways.
◦ Kristin believed in management by wandering around, and
she liked to have many short, informal discussions with
various stakeholders, especially her project team members
◦ She also observed people working alone and as a team,
and assessed the quality of deliverables they produced
◦ Kristin periodically asked her project team members to fill
out self-assessments to assist in performance assessment;
she discussed each person’s assessment and took
corrective actions as needed
◦ Kristin and other project managers at Global Construction
also filled out performance appraisals for each team
member once a year or when a project was completed
55
Team 5 covers this Figure
Project Name: Just-In-Time Training Project
Individual’s Name: ________________
Date: __________________
Project Manager: Kristin Maur
1.
2.
3.
4.
Using a scale of 0-100, assess how you think the project team is performing: ___
Explain the rationale behind the above score.
Using a scale of 0-100, assess how you are performing on this project: _____
Explain the rationale behind the above score. What are your roles and responsibilities,
and how well have you performed them?
5. Briefly assess each team member’s performance. If you had to give each person a
score between 0-100, what would it be?
6. To compare individual contributions, if you had 100 points to allocate to your team,
how would you allocate them?
7. What suggestions do you have for improving team performance?
56
Team 5 covers this Figure
Issue
Log
Oct. 1
Date
Impact on
Issue # Issue Description Project
Reported
Can severely
hurt project
since Jamie is
Key project team our supplier
member is not
management
1
working out
expert
Aug 2
Delaying the
survey will
delay the
IT staff that is
entire project
performing survey since it is a
2
is over allocated critical task Sep 26
Etc.
Reported
Assigned
Priority
Due
By
To
(H/M/L)
Date
Status
Kristin
Kristin
H
Sep 2
Open
Mohamed
Kristin
H
Aug 5 Closed
Comments
Working with
Jamie and
appropriate
managers to
find a
replacement
Paid overtime
was approved
57









Be patient and kind with your team
Fix the problem instead of blaming people
Establish regular, effective meetings
Allow time for teams to go through the basic team-building
stages of forming, storming, norming, performing, and
adjourning
Limit the size of work teams to three to seven members to
enhance communications
Plan some social activities to help project team members and
other stakeholders become acquainted
Stress team identity
Nurture team members and encourage them to help each other
Acknowledge individual and group accomplishments
58


Good communications management is also crucial
to project execution
Distributing information and managing stakeholder
expectations
◦ are the main communications management tasks
performed during project execution

The main outputs of this task are
◦ change requests and updating organizational process
assets,
◦ the project management plan,
◦ and project documents
59


It is important to address important concepts
related to improving project communications
Key concepts include:
◦
◦
◦
◦
Formal and informal communications
Nonverbal communications
Using the appropriate communications medium
Understanding individual and group communication
needs
◦ The impact of team size on project communications
60

It is not enough for project team members
◦ to submit formal status reports to their project managers
and other stakeholders
◦ and assume that everyone who needs to know that
information will read the reports


In fact, many people may prefer to have an
informal, two-way conversation about project
information
Project managers must be good at nurturing
relationships through good communication
61

Research poses the theory that in a face-to-face
interaction,
◦ 58 percent of communication is through body language,
◦ 35 percent is through how the words are said,
◦ and a mere 7 percent is through the content or words that
are spoken

Even if the actual percentages are different in verbal
project communications today, it is safe to say that
◦ it is important to pay attention to more than just the actual
words someone is saying

Nonverbal communications, such as a person’s tone
of voice and body language,
◦ are often more important than the words being used
62
Team 5 covers this Figure
63



Microsoft had been experimenting with its new video conferencing
product, Livemeeting. Anoop Gupta, a vice president of Microsoft’s realtime collaboration group, says that one in every five face-to-face
meetings can be replaced with Web conferencing tools, and Microsoft
estimates that it will save $70 million in reduced travel for organizations
worldwide in one year alone.*
Web-based meeting tools can also help the environment. For example,
in May 2007, WebEx, the leading provider of on-demand web
collaboration applications, kicked off the WebEx Experience Online
Forum. They say they saved over one million pounds of carbon dioxide
by not requiring the more than 650 attendees to travel to participate in
sessions.**
However, any live communication broadcast can also backfire, like
Janet Jackson’s “wardrobe malfunction” during the 2004 Super Bowl in
the United States.
*Steve Lohr, “Ambitious Package to Raise Productivity (and Microsoft’s Profit),”
The New York Times (August 16, 2004).
**Colin Smith, “WebEx Experience Online Forum Saves Over 1 Million Pounds
of Carbon Dioxide Emissions in First Week,” (www.webex.com) (May 22, 2007).
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People are not interchangeable parts
As illustrated in Brooks’ book, The Mythical ManMonth,
◦ you cannot assume that a task originally scheduled to
take two months of one person’s time can be done in one
month by two people;
◦ nine women cannot produce a baby in one month!
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
Individuals prefer different ways to communicate
Geographic location and cultural backgrounds
also affect communications
65
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

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As the number of people involved increases, the
complexity of communications increases because there are
more communications channels, or pathways, through
which people can communicate
Number of communications channels =
n(n-1)
2
where n is the number of people involved
For example, two people have one communications
channel: (2(2–1))/2 = 1. Five people have ten channels
(5(5-1))/2=10
It is often helpful to form several smaller teams within a
large project team to help improve project communications
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
Getting project information to the right people at the
right time and in a useful format
◦ is just as important as developing the information in the
first place


During execution, project teams must address
important considerations for information distribution
The main output of information distribution is
◦ updating organizational process assets,
 such as business processes
67
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



Kristin and her team used instant messaging on a regular
basis both within their team and with suppliers
Several suppliers used Webcasts to communicate
information in a more dynamic way without incurring travel
expenses
The Web-based courses that suppliers were developing for
the project included discussion threads and an “Ask the
Expert” feature, in which learners could ask specific
questions of the instructor or experts within the company on
various topics related to the course
Kristin kept her own personal project blog to document
important events and lessons she was learning while
managing the project
The project steering committee asked Kristin to prepare
guidelines for using these new technologies effectively
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The main executing tasks performed as part of
project procurement is conducting procurements
Key outputs include
◦
◦
◦
◦
◦
selected sellers,
procurement contract awards,
resource calendars,
change requests,
and updates to the project management plan and project
documents
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
Involves obtaining seller responses to proposals
or bids,
◦ selecting sellers, and awarding contracts

Organizations can use several different methods
to approach and select qualified sellers or
suppliers:
◦ Approaching a preferred supplier
◦ Approaching several qualified suppliers
◦ Advertising to many potential suppliers

A procurement document package generally
includes
◦ a summary letter, a request for proposal or quote, and a
contract statement of work
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Team 5 covers this Figure
71

Selecting sellers, often called source selection,
◦ involves evaluating proposals or bids from sellers,
◦ choosing the best one,
◦ negotiating the contract, and awarding the contract

Often, buyers develop a short list of the top three
to five suppliers to reduce the work involved in
selecting a source,
◦ and they are often asked to prepare a best and final offer
(BAFO)

It is good practice to include a detailed statement
of work and schedule as part of the contract
◦ to clarify exactly what work the seller will perform and
when
72
Team 5 covers this Figure
73